WASHINGTON (AP) — Consumer spending slowed in June as income growth turned in the weakest performance in seven months.
The Commerce Department says spending edged up a tiny 0.1 percent compared to a 0.2 percent rise in May. It was the weakest showing since spending increased a similar 0.1 percent in February. Incomes were flat in June following a 0.3 percent rise in May. It was the weakest showing since incomes fell 0.1 percent in November.
Spending is closely watched because it accounts for 70 percent of economic activity. Even with the weakness in June, spending for the April-June quarter revived, helping to lift overall economic growth to a solid rate of 2.8 percent during the quarter. Economists believe solid job growth will keep economic growth at healthy levels this quarter.